True Move, Thailand's third-largest mobile operator, has reaffirmed that it will continue to invest this year despite the current economic slowdown.
CEO Supachai Chearavanont said the company was now ready to invest 10 billion baht (US$285 million) in third-generation (3G) wireless broadband services nationwide this year as soon as the National Telecommunications Commission (NTC) issues 3G licenses.
"We will start investing in our 3G project after the NTC has sorted out the 3G policy and licensing agreement," he said on Friday on the sidelines of an investment forum organized by the Post Today daily.
"We had a policy to invest more in mid- to long-term projects in the belief that it's time now for 'knowledge transfer'."
Supachai said True Move's planned 3G investment would involve a new 2100-MHz frequency and the upgrade of the network on the analogue 850-MHz bandwidth to accommodate high-speed download packet access (HSDPA).
The company is now ruuning a 3G trial service on DTAC's existing analogue 850-MHz frequency.
"A nationwide 3G coverage would be completed over the next two to three years, with a possible investment of 10 billion baht (US$285 million)," he said.
Supachai said the combination of the two investment alternatives was based on pros and cons of each type. Investing in the new 2.1 GHz under a new licensing agreement is likely to stipulate a lower revenue-sharing rate but require a larger investment. Upgrading the analogue 850 MHz, meanwhile, would provide a more competitive network coverage at a lower investment cost but would still be under the existing concession system.
Supachai said Thailand's information and communications technology (ICT) industry would continue growing this year given the still-low penetration rate of broadband internet access and pay-TV.
Thailand has only one million broadband subscribers out of a total 15 million households while cable-TV and local satellite TV subscribers total four million, representing 18 percent, compared with 80-90 percent in developed countries.
"The penetration rate of the local cable-TV in Thailand should stand at 35 percent," he said.
Supachai said he expected to see between seven to eight million new mobile numbers this year, about the same level as last year. True Move expected to attract one-third of the total.
True Corporation recently announced that its rights offering involving a 20-billion-baht(US$570 million) capital increase had received strong support from the Charoen Pokphand Group, its major shareholder.
True floated 10 billion new shares to existing shareholders in the rights issue priced at 1.95 baht (US$0.05)per share. The five-day subscription period ended last Friday.
The company said shareholders had subscribed 3.272 billion shares or 6.362 billion baht. CP Group, meanwhile, subscribed 2.77 billion shares, or 27.7 percent of the total rights issue.
Supachai said the planned multi-round subscription was expected to be fully subscribed by the end of this year.
Shares of True (TRUE) closed on the Stock Exchange of Thailand at 1.87 baht(US$0.05) last week, down one satang, in trade worth 48.52 million baht (US$1.38 million).
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